Man needs one small step – to diversify from structured products
Wed Oct 10, 2012
It is not surprising that Man sought to diversify through GLG and FRM to try and reduce dependence on structured products related to AHL
By Neil Wilson
It was not long ago that Man Group, the London-listed
investment house, appeared to have a uniquely profitable
business model – the envy of rivals, and seemingly
impossible to replicate. Forged in the heyday of ex-chief
executive Stanley Fink, it seemed to generate fees –
and largesse for the group – from every angle you
Building on relationships from its origins as ED&F Man
in soft commodities, Man developed investment products that
sold in the billions to investors around the world. Its
distribution network seemed particularly strong in markets
difficult to get at for many newer hedge fund firms –
in regions such as Latin America, the Middle East and
Man’s products often had high-looking front-end
fees – making handsome commissions for the sales team.
They also came with what some viewed as high management fees
– plus performance fees of course. The fees, however,
ISSN: 2151-1845 / CDC10004H
The full contents of this article are available to active InvestHedge subscribers and trialists only.
TAKE A FREE TRIAL
To continue reading please, take a free trial, subscribe or log in to InvestHedge.
Subscribers have unlimited access to all current content, including fund performance Live League Tables. Start your subscription today - click on the button below.